Clarion buys Boston offices for $87m

The New York-based real estate investment manager has acquired 535 and 545 Boylston Street from Westport Point Capital and Prudential on behalf of a separate account client.

Clarion Partners has acquired two adjoining 13-storey office buildings in Boston for $87.1 million, according to a statement released by the firm. The New York-based real estate investment manager acquired 535 and 545 Boylston Street on behalf of a separate account client, the identity of which a Clarion spokeswoman declined to disclose.

The connected office buildings are located in Boston’s Back Bay submarket and face Copley Square. Although the properties have separate entrances, they are connected on multiple floors. Both buildings were upgraded in 2009 and together comprise 184,222 square feet of space. 

According to data provider Real Capital Analytics, Clarion purchased the buildings from a joint venture between Westport Point Capital and Prudential Investment Management, which originally purchased the assets in 2007 for $77 million. Cushman & Wakefield brokered the sale on behalf of the sellers. 

“Clarion has consistently been a major presence in the Boston office market over the past 20 years,” said Mark Weld, managing director at Clarion Partners. “This acquisition is further evidence of our continued confidence in the Back Bay submarket, which we view as one of the strongest in the country.”

The buildings presently are 92 percent leased to a diverse mix of office and retail tenants. Occupants include Mediterranean restaurant Vlora, mobile telephone shop INXS Wireless, brokerage firm Jones Lang LaSalle and nonprofit philanthropic organisation advisor Bridgespan Group.

News of the acquisition follows the January announcement that Clarion had acquired 78 acres of land in a suburb of Sao Paulo for the development and leasing of Class A industrial warehouse space. The project is expected to be completed in phases over the course of five years and eventually will include three buildings comprising 1.4 million square feet. That acquisition is the result of a joint venture between Clarion and an undisclosed separate account client with an initial equity investment of $100 million.